Question

3 Weatherty Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company's production schedule for May: Percent Completed ad Tons of Pulp 4,000 12,000 16,000 Work-in-Process Inventory, May 1 Started during May Units to account for Materials Conversion 100% 505 Units from beginning Work-in-Process, which were completed and transferred out during May Started and completed during May Work-in-Process Inventory, May 31 Total units accounted for 4,000 7,200 4,800 16,000 1000 500 The following cost data are available: $ 61,280 7,256 Work-in-Process Inventory, May 1 Direct materials Conversion Costs incurred during May Direct materials Conversion 180,480 301,600 Required: 1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted average method. 2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted average method. Complete this question by entering your answers in the tabs below. < Prev 3 of 3 Next

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units			4,000
Add: Units Started in Process			12,000
Total Units to account for:			16,000
UNITS TO BE ACCOUNTED FOR:
Units completed and transferred out		11200
Ending Work in Process			4,800
Total Units to be accounted for:		16,000
Equivalent Units:
			UNITS	Material Cost	Conversion
				% Completion	Units	% Completion	Units
Units completed and transferred out	11200	100%	11,200	100%	11,200
Ending Work in Process	4800	100%	4,800	50%	2,400
Total Equivalent units	16000		16,000		13,600
TOTAL COST TO ACCOUNT FOR:
				Material		Conversion
Cost of beginning WIP		61,280		7256
Cost added during the period		1,80,480		3,01,600
Total Cost to account for:		2,41,760		3,08,856
Equivalent Units			16,000		13,600
Cost per Equivalent unit		15.11		22.71
Req1.
			Equivalent units
Direct Material		16000
Conversion cost		13600
Req 2.
			Cost per EUP
Direct Material		15.11
Conversion cost		22.71